I would say it might help to have a few strategies to rely on. Below is a link to a valuable author on seeking alpha that details long-term investing strategies that have and may continue to outperform S&P 500. They are centered around (1) Dividends (2) Small Cap (3) Low Volatility (4) Value (5)...
(1) One risk would be possible termination of the ETF, I think if VIX futures increase 80% overnight they will suspend the fund and liquidate what's left. I've seen arguments on both sides about the likelihood of such event.
(2) Unlikely that you will be able to time an exact bottom and if you...
Buying a put spread or selling a call spread or even buying SVXY. The important thing is why are you entering the trade. A good example was Trump's press conference....as he was speaking SVXY sold off...good time to buy...the world wasn't coming to end...banks weren't failing. As soon as he shut...
Selling a call or a put with the sole reason that you think it can't get there is a poor trade. There are those who blew up their accounts in 2011 and again in 2015 for all the reasons mentioned above.
I trade volatility like a dealer in blackjack....look for a trade where the odds are in your...
Have a list of things you want to buy and a framework for how to deploy capital. The market goes down 10-15% like last year...try to put that move in context and decide how much to deploy. Don't listen to the talking heads...have strong hands.
$bpnya, $nya50r, $nya200r, NYSE A-D line, NYSE TICK, AAII investor survey and market profile.
Basically I am just trying to put the market into context and form a narrative.
I think it helps having multiple strategies that work for different market environments.
Using technicals, sentiment and market profile have helped me determine the market environment.
Since the election momentum has been the highest yield. There are many articles on momentum...
My two cents.
I've seen backtested models on the 1SD strangles and the performance is less than stellar...not sure it is even a viable long-term strategy. I know that's how Karen the Supertrader blew up her fund..
With regards to long-term investing there are many articles on Seeking Alpha...